Babcock International Group PLC on Monday said it has agreed with the UK Nuclear Decommissioning Authority to bring to an end its Magnox decommissioning contract at the end of August 2019. This means the contract will have been operated by Cavendish Fluor Partnership, in which Babcock has a 65% stake, for a full five years. Babcock said that this will result in the removal of around GBP800 million from its GBP20 billion order book, and will mark an annual step down in revenue of around GBP100 million – less than 2% of its turnover – from its financial year 2020/2021. It said it expects to replace this revenue over that timeframe. Babcock said it does not expect end of the contract to have “any negative financial impacts” over the next three years, nor to change the financial guidance it will give in May with its results for the financial year to the end of March. Babcock said that it had become apparent that the work that needed to be done at the twelve Magnox sites was “now materially different in volume” from what was specified in the Nuclear Decommissioning Authority’s tender, which puts the contract at risk of a legal challenge.
London South East 27th March 2017 read more »